A company is currently operating at 80% capacity producing 5,000 units. Current cost information relat 61 to this production is shown in the table below: Per Unit S 34 Sales price Direct material Direct labor Variable overhead Fixed overhead The company has been approached by a customer with a request for a 100-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits? A) Any amount over $34 per unit. B) Any amount over $20 per unit. C) Any amount over $14 per unit. E) Any amount over S9 per unit. 62. Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard specifications for one unit of Teragram include six pounds of material at $0.30 per pound. Actual production in November was 3,100 units of Teragram. The accountant computed a favorable materials purchase price variance of $380 and an unfavorable materials quantity variance of S120. Based on these variances, one could conclude that: A. more materials were purchased than were used. B. more materials were used than were purchased. the actual cost of materials was less than the standard cost. D. the actual usage of materials was less than the standard allowed. 63. The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of S720,000. If these microcomputers are upgraded at a total cost of $100,000, they can be sold for a total of S160,000. As an alternative, the microcomputers can be sold in their present condition for $50,000. The sunk cost in this situation is: A. $720,000 B. $160,000 C. $50,000 D. $100,000 64. If a company applies overhead to jobs on the basis of a predetermined overhead rate, a credit balance in the Manufacturing Overhead account at the end of any period means that: A. more overhead cost has been charged to jobs than has been incurred during the period. B. more overhead cost has been incurred during the period than has been charged to jobs. C. the amount of overhead cost charged to jobs is greater than the estimated cost for the period. D. the amount of overhead cost charged to jobs is less than the estimated overhead cost for the period